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Maharashtra: Industry bodies to meet on January 28 against higher power tariff

The January 28 meeting is organised by the coordination committee for electricity consumers and industry organisations.

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Over 200 industry organisations from Maharashtra are meeting on Jan 28
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More than 200 industrial organisations across Maharashtra are meeting for the first time on January 28 to protest against higher electricity tariff charged by the state distribution company (MahaVitaran) and decide on the next course of action. Industry organisations will make a fresh appeal to the state to intervene and take necessary steps to provide much needed relief in electricity tariff. The January 28 meeting is organised by the coordination committee for electricity consumers and industry organisations.

The Maharashtra Chamber of Commerce, Industry and Agriculture president Santosh Mandlecha argued that the electricity tariff charged to industry consumers in the state is 20 per cent to 35 per cent higher than that of adjoining states.''The Maharashtra Electricity Regulatory Commission in its recent order has given time up to April 1 to industry consumers to install necessary equipment to maintain unity power factor. However, it is not enough. The industry organisations want that a substantial reduction in tariff hike which came into effect from September 1 last.''

As per the revised tariff, for a single shift in an industrial unit, the tariff rose to Rs 9 per unit up from Rs 7. For units that operate on three shifts, the new tariff is at Rs 7 per unit against the earlier Rs 5.50.

The Maharashtra Veej Grahak Sanghatana President Pratap Hogade said the higher tariff is causing heavy losses to industries. ''The government needs to sanction the subsidy of Rs 3,400 crore for the survival of industry especially to bear the burden of hiked tariff,'' he noted.

Mandlecha said the government needs to bring down the capital expenditure and higher operation and maintenance cost of MahaVitaran and Maharashtra State Power Generation Company (MahaGenco) in order to reduce the average cost of supply. ''The government needs to issue directives to MahaVitaran to ensure 24x7 power supply as the frequent power failures are hampering operations of industrial units,'' he added.

Mandlecha warned that the industry organisations will hit the road if the tariff is not reduced and brought to a competitive level.

Power Woes

  • Electricity tariff charged to industry consumers in the state is 20% to 35% higher than that of adjoining states
  • Higher tariff is causing heavy losses to industries
  • MERC's decision allowing industry consumers to install necessary equipment to maintain unity power factor upto April 1 is not enough to get relief in tariff
  • Want reduction in cost of supply
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